A forest carbon sequestration project run by the Confederated Tribes of Warm Springs has ended after a major wildfire destroyed large portions of the enrolled forest area, eliminating much of the carbon storage underpinning the agreement.
The project, launched in 2015 under the California Air Resources Board cap-and-trade offset program, covered roughly 22,000-24,000 acres of tribal forest east of Mount Jefferson in Oregon. Over several years, the initiative generated about $25 million in revenue through the sale of carbon offset credits.
However, the Lionshead Fire burned through large sections of the project area in 2020, destroying mature trees and releasing much of the stored carbon. The fire ultimately scorched more than 200,000 acres on and around the Warm Springs Reservation.
Tribal officials said the scale of the damage triggered conditions within the project’s carbon agreement that allowed the Tribes to exit the contract.
After assessing the burned land, managers determined the forest could no longer meet the carbon sequestration requirements needed to participate in the offset market.
According to tribal natural resources manager Austin Smith, the blaze was a “stand-replacement” fire – an intense event that kills mature trees and resets the forest growth cycle. Areas that had been conserved rather than actively managed or logged were particularly vulnerable to the high-severity burn.
The project had previously been one of the largest revenue sources for the Tribes, with payments delivered in several tranches and additional annual residual income. Some of those funds were reinvested in forest thinning, forest health initiatives, community projects, and business development.
The experience has prompted tribal leaders to reconsider how carbon markets intersect with forest management and wildfire risk.
Officials say future projects may involve rotating forest areas and incorporating more active management practices to improve resilience while continuing to pursue long-term carbon sequestration opportunities.
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